Topic 2 - Influence of culture in international business

Question 1

Global Leadership

Answer 1

Operating effectively whilst being respectful of cultural diversity. Global manager open and flexible and are willing to examine personal attitudes.

Question 2

Cross - Cultural Communication

Answer 2

Learning foreign languages and being aware of verbal and non – verbal relationships.

Question 3

Cultural Sensitivity

Answer 3

Understanding cultural influences on behaviour and translating cultural awareness into effective relationships.

Question 4

Acculturation

Answer 4

Adjusting and adapting to a specific culture. Manager must develop necessary skills.

Question 5

Communication

Answer 5

A process of CIRICULAR INTERACTION. Includes a code of verbal and non – verbal factors.

Question 6

In order to improve intercultural communication:

Answer 6

• Pay attention to the person and message
• Empathise and build rapport
• Share meaning

Question 7

Communication Styles:

Answer 7

• Explicit and Implicit (Low – High Context)
• Direct vs. Indirect
• Silence and verbal overkill
• Use of praise
• Slang, idioms, euphemisms etc.

Question 8

Low Context

Answer 8

• Swiss

* German

Question 9

High Context

Answer 9

• Japanese

* Chinese

Question 10

Non - Verbal Communication

Answer 10

• Tone of voice
• Proxemics (distance the people establish between themselves and the other – high touch vs low touch)
• Body position and gestures
• Facial expression

Question 11

Negotiation

Answer 11

A process where 2 or more parties come together to try and create a mutually agreeable decision. It’s important to satisfy own needs whilst keeping the other party’s needs in mind.
Designed to create something new that neither party could attain on their own or to resolve a problem or conflict between the parties.

Question 12

Variables influencing negotiation:

Answer 12

• Basic understanding of the negotiation process
• Protocol
• Complexity of language
• Risk – propensity
• Decision – making process
• Form of satisfactory agreement

Question 13

Interpreters:

Answer 13

• Explain the main ideas in 2 or 3 ways
• Allow interpreter to clarify points
• After, confirm in writing what has been agreed

Question 14

Skills of successful negotiation:

Answer 14

• Learn the negotiation script of your counterpart
• Predict counterpart’s approach
• Choose a strategy

Question 15

DO’s during international negotiation

Answer 15

• Simple language
• Be well – prepared
• Clear objectives
• Develop personal relationships
• Follow protocol
• Summarise negotiations
• TRUST IS KEY
• Understand national sensitivities

Question 16

DON’T’s during international negotiation

Answer 16

• Allow yourself to be manipulated
• Violate national sensitivities
• Insist on sticking to agenda
• Skip authority levels
• Demand a decision

Question 17

New Expatriates

Answer 17

Adapt to changes in global economy, new type of international assignments – accommodate a broader range of business and development goals.

Question 18

Local Plus

Answer 18

Transfers individuals abroad. Establish permanent residence in a new country. Fills an urgent business need or used to relocate key talent. Offers significant support.

Question 19

Global Nomads

Answer 19

People who move from one international assignment to another without returning to their home country.

Question 20

Frequent Business Travellers

Answer 20

Either executives with regional responsibilities or project specialists who spend significant time abroad.

Question 21

Commuters

Answer 21

Live in one country but primarily work in another.

Question 22

Cultural Shock

Answer 22

Consequence of strain and anxiety resulting from contact with a new culture.

Question 23

Causes of Cultural Shock

Answer 23

• Stress reactions
• Cognitive fatigue
• Role shock
• Personal shock